Euro Oversold As Shorts Surge To Highest Since June 2010

For those seeking an oversold security, look no further than the EUR, which in the week ended Sept. 13, was the biggest FX loser, as non-commercial exposure rose 50% to a net short of -54,459 from -36,443 contracts the week before. This is the most bearish net exposure in the EUR since June 2010, and positions the currency for a short squeeze, although if history is any guide it still has a ways to go: the 2010 trough was -114k net contracts hit in May of 2010, just after it became apparent that Europe is falling apart. Also, despite speculation that traders have left the safe-haven status of the CHF following last week's SNB intervention, the Swiss Franc retained its bullishness, with net exposure remaining long, although declining modestly from 7,549 to 5,493 contracts. Also not surprising is that bullish bets in the JPY rose from 32,787 to 34,955 after declining past week. It seems that Yoda will be watching, watching, watching his Bberg terminal very closely in the coming days.

These open interest studies for futures contracts are some kind of art form; I tried to make predictions by studying them for years; finally I realized they don't mean shit. That's why they're willing to publish them; there's nothing you can do with them. In other words they belong to the 98% of the "data stream" that's noise.

Just like the ES is Ben's instrument of choice to keep Obamanomics afloat in the US, the EUR/USD is the ECB's parent companys choice, i.e. PBofC to prop up it's investment in Euroland. Right now, smart money is short Euro, while the Chinese reserve mgr and it's SWF are keeping it afloat. But I think that the Chinese are in a much better position. At the flip of a dime, like the old cliche goes, they can flip their 1t Euro investment into.... wait for it.... CHF.at a rate of 1.2030. At 3:05am CET :)))))))))))))))))))))))))))))))))))))))))))))) Thanks SNB. But as for Ben, I guess he's just SOL.

macd, says buy the euro right now, but it doesn't mean that's the ultimate bottom. my euro short closed out thursday (instead of funny closing I reduced it by a third (having has a feeling about friday based on the speed lines). but you should be layering intot he euro on the dips for now